Using SAP Collection Strategies & Correspondence ... · Using SAP Collection Strategies &...

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Using SAP Collection Strategies & Correspondence Automation to Increase Collections Performance and Reduce DSO Sashi Narahari CEO, HighRadius SAP Receivables Management Seminar Feb 6, 2013 Dallas, Texas

Transcript of Using SAP Collection Strategies & Correspondence ... · Using SAP Collection Strategies &...

Page 1: Using SAP Collection Strategies & Correspondence ... · Using SAP Collection Strategies & Correspondence Automation to Increase Collections ... SAP Collections Management Users ...

Using SAP Collection Strategies & Correspondence Automation to Increase Collections Performance and Reduce DSO

Sashi Narahari CEO, HighRadius

SAP Receivables Management Seminar

Feb 6, 2013 Dallas, Texas

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Agenda

• SAP Collection Strategies – How to effectively segment customers?

• Sap Collections integration with A/R – Is it real-time?

• Correspondence Automation – How to make the computer do a lot of ‘standard repetitive

work’ and refocus the analysts time on high value targets?

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Demo

Standard SAP Collections Management

HighRadius Advanced Correspondence Automation

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SAP Collections Management Users

Define collection strategies / rules

Define work item assignment to users / groups

Monitor and reallocation of workload

Incoming / Outbound collection calls

Process daily worklist based on prioritization

Record customer contact and follow up

Collections Manager Collections Specialist

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Collections Management Users Collections Manager

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Data available for Collection Strategies

• Credit Limit

• % Utilization

• Credit Exposure

• Risk Category

• Master Data or Operational Data which can be added to collections management

• Aging

• Amount

• Dunning Level

• Amount Dunned

• Disputed Amount

• Dispute Case Status

• Payment Data

• Broken Promise to Pay

• Number of Promise to Pays

• Promise to Pay Amount

• Customer Contacts

• Resubmissions Collections

Data

Open AR & Dispute

Mgmt Data

Credit Data Other Data

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Collection Rules

Collection Strategy

Collection Strategy for High Risk Customers

Maximum Valuation = 100

High to Medium Risk and greater than 80% Credit

Limit Utilization

Valuation: 35 points

Past Due Invoices Over 15 days Past Due & Dunned

One or More Times

Valuation: 50 points

Resubmission Due for the Customer

Valuation: 15 points

Collections Strategy Definition

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Collection Strategy Valuation

Valuation of customer is les than 20% of Maximum Valuation – Low Priority

Valuation of customer is less than 40% of Maximum Valuation – Medium Priority

Valuation of customer is less than 60% of Maximum Valuation – High Priority

Valuation of customer is less than or greater than equal to 100% of Maximum Valuation – Very High Priority

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Solution Architecture

Set of Customers

[C1, C2, ………Cn]

Set of Customers

[C1, C2, C3……………Cn]

Subset of Customers [C1, C2, ………Cn]

Strategy

Rules

Auto Correspon-

dence

Call

Email

Fax

Mail

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Sample Scenario

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Customer Segmentation • Small & Medium Business – Slow Pay

– Automated Proactive Reminder 7 days before

– Past Due Notice 1 after 7 Days

– Past Due Notice 2 after 21 Days

– Demand Notice after 45 days

– Call Customer after 60 days

• Small & Medium Business - Fast Pay – Past Due Notice 1 after 14 Days

– Past Due Notice 2 after 28 Days

– Call Customer after 50 days

• Major Accounts (Large Customers) – Proactive Reminder 14 days before

– Past Due Notice 1 after 14 Days

– Call Customer after 30 days

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Collections Management: Collection Strategy

Strategy for Slow Pay

Customers

• Pro-active (0-20 points) • 1st Past Due (21-40 points) • 2nd Past Due (41-60 points) • Demand Notice (61-80 points) • Call (81-100 points)

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Collections Management: Collection Strategy

Strategy for Fast Pay Customers

•1st Past Due (21-40 points) • 2nd Past Due (41-60 points) •Call (81-100 points)

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Collections Management: Collection Strategy

Strategy for Major

Customers

• Pro-active (0-20 points) • 1st Past Due (21-40 points) • 2nd Past Due (41-60 points) •Call (81-100 points)

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Collections Management Users Collections Specialist

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List of Customers Prioritized

Collections Management: Collector’s Worklist

• Pro-active (0-20 points) • 1st Past Due (21-40 points) • 2nd Past Due (41-60 points) • Demand Notice (61-80 points) • Call (81-100 points)

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Is SAP Collections real-time?

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• Worklist generation is batch • Say once a day

• Short Answer: YES!

• Open Items is real-time • Data is being read directly

from A/R

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Ability to send correspondence

from Worklist

Correspondence: From Worklist

Select Pro-active to mass process

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Select Package and which transactions to

include in correspondence

Select Contact and Correspondence

Mode

Correspondence: Proactive Reminder

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Correspondence: Proactive Reminder

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Select 1st Past Due to mass

process

Correspondence: 1st Past Due

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Correspondence: 1st Past Due

Select 1st Past Due Package

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Correspondence: 1st Past Due

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Select 2nd Past Due to mass

process

Correspondence: 2nd Past Due

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Correspondence: 2nd Past Due

Select 2nd Past Due Package & ‘Send’

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Correspondence: Sample Email Correspondence

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Correspondence: Sample Email Correspondence

Letter and Invoice Copy attachments

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Correspondence: Sample Email Correspondence

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Correspondence: Sample Email Correspondence

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Select Demand Notice to process

Correspondence: Demand Notice

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Process Receivables: Customer Details Screen

Send correspondence button for individual

customers

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Correspondence: Demand Notice

Select Demand Notice Package

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Correspondence: Demand Notice

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Correspondence: Package Definition

Select from a list of Smart Forms, Documents such

as Invoice Copy, POD copy etc to define a ‘collated’ package

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Select Letter to Create/Edit

Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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Correspondence: Maintain Letters

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‘Call’ customers with high past due

balances or no outcome after

correspondence

Collector’s Worklist: Call Customers

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Review open items to be

collected

Collections Management: Invoice Summary

Default Customer Contact readily available

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Review payment history

Collections Management: Payment History

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Customer Contact Outcome

Customer Contact

Promise to Pay

Dispute Case

Request Follow up

Request additional

data

Not Available

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Call Customer Outcome: Promise-to-Pay

Create promise to

pay on a collection call

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Call Customer Outcome: Promise-to-Pay

Record promise for payment or

customer contact at the invoice level

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Call Customer Outcome: Negotiate Installments

Ability to setup Installment plans

on high risk customer

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Promise for payment has

been recorded

Collections Management: Promise-to-Pay

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Collections Management: Promise-to-Pay

Summary of all Promise

to Pay

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Call Customer Outcome: Create Follow-up

Create a Follow-up

reminder on specific invoices

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Call Customer Outcome: Create Follow-up

Identify the date of the

resubmission along with a

Reason

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Collections Management: Resubmission

Summary of all Resubmission

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Call Customer Outcome: Invoice Disputed

Create Disputes on

Invoices

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Call Customer Outcome: Invoice Disputed

Ability to identify details of the dispute

and route it to the appropriate analyst

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Review open and closed

dispute cases

Collections Management: Dispute Cases

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Notes Management

Select invoice and enter invoice specific notes

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Notes Management

Identify the reason of the

note

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Collections Management: Notes

Summary of all Notes

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Text

Work item completed

Collections Management: Completed Item

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